The invention discloses a resistance-free medium wire feed pulsed power source and a processing method and gap discharge state recognition state thereof. A circuit comprises a power loop, a drive circuit, an FPGA controller, a voltage detection circuit and a current detection circuit. When a first switch pipe is turned on to the maximum wait breakdown time threshold value, the gap voltage in the time frame is detected, the average voltage is calculated, and of the average voltage is a floating voltage, a gap is recognized in an idling state; otherwise, the first switch pipe is turned off, after dead time, when a second switch pipe is turned on, the gap current is detected, changes of the current descending slope are calculated, if the slope change rate exceeds the descending slope change rate threshold value, the gap is recognized as a short circuit, and if the slope hardly changes or changes slightly, the gap is recognized as normal discharge; and according to the recognized gap state, necessary bases are provided for the feed direction and speed of a servo system. The recognition precision of the gap discharge state of the power source is improved, and then the processing efficiency and discharge rate of the power source are improved.